A new centre for international arbitration is set to open in Sydney in response to the rapid increase in cases occurring across the Asia-Pacific region.

The Australian International Disputes Centre (AIDC) is due to open in May 2010 and is intended to provide international businesses with an alternative location for arbitration outside Asia and the US.

The centre is being developed by the Australian Centre for International Commercial Arbitration (ACICA), the only arbitration body in the country, which has been working with the Australian Government.

Holman Fenwick Willan's Sydney-based arbitration partner, Alex Baykitch, the vice-president of ACICA, has played an active role in creating the new centre, which is hoped to become an alternative to the traditional centres of Singapore and Hong Kong.

Baykitch said: "The arbitration centre is part of the Australian Government's strategy for Sydney to be a major centre for the resolution of disputes within the region. Within Asia there are subtle cultural differences, and the opening of the centre in Sydney will offer more choice in terms of venue for the resolution of disputes for those Asian parties, or indeed parties outside the region, who may be uncomfortable with the current choices."

The new arbitration centre comes as Australia has seen an increasing amount of interest from UK firms in recent months.

Allen & Overy formally launched in Australia earlier this month (1 March), while Norton Rose's merger with Deacons went live in January. Holman Fenwick, meanwhile, is considering opening a third office in Perth in addition to its Sydney and Melbourne bases.

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